Portugal's real estate market report going into 2024

By Property Market-Index in association with Portugal Pathways

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The Portuguese property market has been gaining momentum in recent years, driven by a combination of factors, including the country's stable economy, low taxes, and exceptional quality of life.

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This report provides an in-depth overview of the current state of the property market in Lisbon, comparing it to other regions of Portugal, namely the Algarve, the Silver Coast, Porto, Braga and the Azores and Madeira archipelagos.

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Lisbon and surrounding areas

The capital and largest city of Portugal, Lisbon stands as a popular destination for tourists and investors alike. The city pulsates with a vibrant culture, a diverse array of neighbourhoods, and a robust economy.

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The average price per square meter for property in Lisbon hovers around €4,000, but prices can significantly vary depending on location, size, and property condition.

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Positives:

• Vibrant culture and lifestyle
• Diverse range of neighbourhoods
• Strong economy
• Excellent infrastructure
• Easy access to international airports and lively neighbouring towns like Sintra, Cascais, and Comporta, for instance.

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Negatives:

• Higher cost of living compared to the rest of Portugal
• Limited parking availability
• Traffic congestion

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Algarve

The Algarve, nestled in southern Portugal, is renowned for its stunning beaches, warm and sunny climate, and world-class golf courses.

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The average price per square meter for property in the Algarve averages around €2,500, but prices can fluctuate depending on the specific location.

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Positives:

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• Picturesque beaches
• Plentiful sunshine (over 300 days annually)
• Exceptional golf courses
• Prosperous tourist economy

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Negatives:

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• Certain areas are overdeveloped
• Higher cost of living in specific areas
• Seasonal fluctuations in demand

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Silver Coast

The Silver Coast, situated in central Portugal, is distinguished by its beaches, surfing allure, and charming historic towns.

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The average price per square meter for property on the Silver Coast ranges around €1,500, varying depending on specific location.

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Positives:

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• More affordable than the Algarve
• Less developed than the Algarve
• Stunning beaches
• Thriving surf culture

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Negatives:

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• Limited access to international airports
• Fewer amenities than the Algarve
• More rural atmosphere

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Porto

As Portugal's second-largest city, Porto is recognized for its captivating historic centre, renowned port wine, and welcoming people.

The average price per square meter for property in Porto averages around €3,000, though prices can vary based on location, size, and property condition.

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Positives:

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• Gorgeous historic centre
• World-class port wine heritage
• Friendly and hospitable locals
• More affordable compared to Lisbon

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Negatives:

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• Limited access to international airports
• Fewer amenities than Lisbon
• More humid climate

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Azores

The Azores archipelago, nestled in the Atlantic Ocean, is renowned for its volcanic landscapes, lush greenery, and warm hospitality.

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The average price per square meter for property in the Azores ranges from €2,000 to €3,000.

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Positives:

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• Tranquil volcanic landscapes
• Plentiful greenery
• Friendly and welcoming locals
• Opportunities for outdoor activities

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Negatives:

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• Remote location
• Limited international airport access
• More expensive than the mainland

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Madeira

Madeira, another volcanic island paradise, is known for its stunning scenery, pleasant climate, and rich cultural heritage.

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The average price per square meter for property in Madeira ranges from €2,500 to €4,000.

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Positives:

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• Spectacular landscapes
• Pleasant and mild climate
• Rich cultural heritage
• Opportunities for hiking and water sports

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Negatives:

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• Remote location
• Limited international airport access
• More expensive than the mainland
• Supply and Demand

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The supply and demand dynamics for property in Portugal are currently imbalanced. There is a high demand for property, particularly in Lisbon and the Algarve, while the supply remains limited.

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This has led to price increases in recent years, and this trend is expected to continue in the most sought-after areas.

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Outlook

The outlook for the Portuguese property market remains positive. The economy is projected to continue growing, and there is a strong demand for property from both domestic and international buyers.

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However, the rising cost of living in Lisbon and the Algarve, along with the limited availability of property, are likely to pose challenges. Despite these concerns, Portugal still compares favourably to most established international real estate markets, and its excellent healthcare, educational system

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Portugal

Portugal, a captivating nation nestled on the Iberian Peninsula, boasts a rich history, stunning landscapes, and a vibrant cultural tapestry. From its picturesque coastlines to its charming historical towns, Portugal offers a diverse array of experiences for travellers seeking adventure, relaxation, and cultural immersion.

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Location and Geography

Portugal occupies the westernmost point of the Iberian Peninsula, bordering Spain to its east and the Atlantic Ocean to its west, south, and north. Its terrain encompasses diverse landscapes, from the rugged Serra da Estrela mountains in the interior to the expansive Alentejo plains and the picturesque Algarve coastline.

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The country's islands, Madeira and the Azores, further enhance its geographic diversity, offering volcanic wonders and sub-tropical climates.

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History and Culture

Portugal's history is deeply intertwined with the sea. As a maritime power, Portugal played a pivotal role in shaping world trade and exploration during the Age of Discovery.

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This legacy is evident in its architectural gems, such as the Jerónimos Monastery in Lisbon and the Belém Tower, as well as its cultural traditions, including Fado music and the art of azulejo tiles.

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Cities and Towns

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Portugal's cities are a vibrant blend of historical charm and modern living. Lisbon, the capital and largest city, exudes a cosmopolitan atmosphere, with its medieval Alfama district, Belém's UNESCO-listed sites, and the iconic São Jorge Castle.

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Porto, Portugal's second-largest city, captivates with its UNESCO-listed Ribeira district, its iconic Dom Luís I Bridge, and its lively port wine scene.

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Towns Near Lisbon

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Vila Nova de Gaia: A charming riverfront town across the river from Porto, Vila Nova de Gaia is renowned for its port wine cellars and stunning views of Porto.

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Sintra: A picturesque town nestled in the Serra de Sintra mountains, Sintra is known for its UNESCO-listed Pena National Palace, its whimsical Quinta da Regaleira, and its enchanting Moorish Castle.

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Óbidos: A walled medieval town, Óbidos exudes a captivating charm with its narrow cobblestone streets, whitewashed houses, and charming restaurants.

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Towns Near Porto

Aveiro: Aveiro, known as the "Venice of Portugal," is renowned for its canals lined with pastel-coloured houses, its colourful moliceiros boats, and its delicious Ovos Moles delicacies.

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Guimarães: The birthplace of Portugal, Guimarães boasts a UNESCO-listed medieval city centre, a majestic castle, and a vibrant cultural scene.

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Porto Santo: A beautiful island in the Madeira archipelago, Porto Santo is known for its golden sands, its pristine beaches, and its healing thermal springs.

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Comparisons

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Lisbon and Porto are Portugal's two main metropolitan centres, each offering a unique blend of attractions and experiences.

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Lisbon exudes a relaxed and cosmopolitan atmosphere, while Porto retains a more traditional and authentic character.

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Azores and Madeira

The Azores and Madeira, Portugal's autonomous regions, are archipelagos located in the Atlantic Ocean, offering a departure from mainland Portugal.

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The Azores are characterized by volcanic landscapes, lush forests, and a temperate climate, while Madeira boasts sub-tropical temperatures, stunning cliffs, and a rich viticultural heritage.

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Metrics and Comparisons

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Here's a table summarizing key metrics and comparisons between Lisbon, Porto, the Azores, and Madeira:

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Conclusion

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Portugal, with its diverse landscapes, rich history, vibrant culture, and welcoming people, offers an unforgettable travel experience.

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Whether exploring the cosmopolitan charms of Lisbon, the historic wonders of Porto, the volcanic beauty of the Azores, or the sub-tropical paradise of Madeira, Portugal promises a journey of discovery.

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It has great healthcare, low crime, and rates 7th in the world for happiness indices and is number 1 rated country for relocation and this all having positive impact on real estate markets in Portugal.